Welcome!

News Feed Item

Northern Frontier Corp. Announces its Fourth Quarter and Fiscal 2013 Financial Results, its 2014 Capital Expenditure Budget and Declares its First Dividend

CALGARY, March 20, 2014 /CNW/ - Northern Frontier Corp. (TSX-V: FFF) (the "Corporation" or "Northern Frontier") is pleased to announce its fourth quarter and fiscal 2013 financial results, its 2014 capital expenditure budget and declaration of its first dividend.

Selected Financial Highlights

       
(in 000's CAD, except as noted) 3 months ended
Dec 31, 2013
13 months ended
Dec 31, 2013
12 months ended
Dec 31, 2013 (1)
      (pro forma)
Revenue $   14,522 $  15,017 $  67,167
Gross Profit 2,955 3,077 17,570
   as a % of revenue 20.3% 20.5% 26.2%
EBITDA (2) 2,093 1,867 14,753 
   per share 
   as a % of revenue
$       0.26
14.4%
$      0.71
12.4%
$      1.32
22.0%
Net loss and comprehensive loss (409) (1,967) $    1,732
Earnings (loss) per share - basic and diluted $    (0.05) $   (0.74) $      0.16
Funded debt (3) 32,723 32,723  
Weighted average common shares outstanding (4) 8,126,304 2,643,524 11,160,609
Common shares outstanding (4) 11,160,609 11,160,609 11,160,609
Common share purchase warrants outstanding 5,115,639 5,115,639  

(1)      These amounts represent management's pro forma estimate of Northern Frontier's financial results if it had completed its business combination on January 1, 2013 rather than the actual date of September 27, 2013.
(2)      EBITDA (earnings before qualifying transaction costs, finance costs, taxes, depreciation and amortization, gain/loss on disposal of property and equipment and share-based compensation) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".
(3)      Funded debt (loans and borrowings before unamortized debt issue costs and obligations under finance lease less cash and cash equivalents) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".  
(4)      Amounts have been adjusted for the effect of the 1 for 15 common share consolidation completed on February 15, 2013.

Overview

Northern Frontier completed its first business acquisition in September 2013, by purchasing a civil and logistics services provider located within the steam assisted gravity drainage ("SAGD") Oilsands market of northeastern Alberta for $54.3 million. Central to our strategy is to build on a company with a solid foundation, through providing an expanding array of industrial services to the long-term asset base being developed in the resource sectors of western Canada. This acquisition has provided that platform, with a substantial asset base, solid customer relationships and a physical location proximate to substantial future growth opportunities within the SAGD market.

The company also completed two equity raises for combined net proceeds of $28.6 million to support growth through strengthening its balance sheet and deploying capital in anticipation of 2014 demands. As part of the second capital raise, the board of directors implemented a dividend policy to support a long-term cost of capital that will accelerate future acquisitions and growth of the business.

The fourth quarter of 2013 (post-platform acquisition) was focused on implementing financial systems and capital structure that would facilitate the transition of the business from a privately-held organization to one that will meet the expectations of the public markets.

Northern Frontier exited fiscal 2013 with a pro forma EBITDA of $14.8 million. The stand-alone trailing twelve month EBITDA of our platform acquisition was $16.6 million, exceeding initial expectations when we agreed to acquire the business. Overall, Northern Frontier's fiscal 2013 performance and post-platform acquisition financial results (effectively the fourth quarter of 2013) were relatively consistent with expectations. Financial results in the fourth quarter of 2013 were impacted by wet weather in early October, a deferral of a couple of client projects and an extended holiday break at the end of the quarter. This resulted in an increase in labor costs as a percentage of revenue and a decline in camp utilization. Overall, management is satisfied with the earnings capacity it acquired through the platform acquisition and expects to increase the earnings capacity of the business through fiscal 2014.

Outlook

Management expects the first half of fiscal 2014 to have moderate activity levels compared to fiscal 2013. Demand for services is currently expected to accelerate in the second half of fiscal 2014, driven by new construction and successful production results from existing facilities within the SAGD market that the Corporation participates in. Northern Frontier also expects to see growth from its capital expenditures made in the fourth quarter of 2013, including an expansion to its camp bed capacity driven by expected employee growth and equipment fleet. In addition, the Corporation expects deployment of capital into its logistics strategy in early 2014 to start contributing to earnings growth in the second half of fiscal 2014.

2014 Capital Expenditure Budget

For fiscal 2014, the Corporation's net capital expenditure program is $14.3 million, allocated as follows:

         
(in 000's CAD)   Growth Sustaining Total
         
Automotive   $           - $      355 $      355
Construction and excavating   5,375 3,020 8,395
Logistics   6,480 - 6,480
    11,855 3,375 15,230
         
Estimated proceeds on disposal of equipment     (950) (950)
         
Capital additions, net   $  11,855 $   2,425 $  14,280

Dividend Declared

Northern Frontier has declared its first quarterly dividend of $0.065 per common share, payable on April 15, 2014 to holders of record on April 3, 2014 (ex-dividend April 1, 2014). This represents an annual yield of 7.1% based on the March 20, 2014 closing price of $3.65 per common share.

Additional Information

Northern Frontier's audited consolidated financial statements for the 13 months ended December 31, 2013 and 12 months ended November 30, 2012 and fiscal 2013 management discussion and analysis ("MD&A") have been filed with the Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com.

Conference call

Management of Northern Frontier will hold a conference call on Friday, March 21, 2014, at 9:30 a.m. Calgary / 11:30 a.m. Toronto time.  The call will feature remarks by Chris Yellowega, President and CEO and Monty Balderston, Executive Vice President and CFO regarding the financial results.

Conference dial-in instructions are as follows:

Toronto: 416-764-8682
North America: 888-390-0549
Conference ID: 95520669

A replay of the call will be available 24 hours after the event until 11:59 p.m. EST on March 28, 2014. To access the archived conference call, please dial 1-888-390-0541 and enter passcode 520669.

About Northern Frontier Corp.

Northern Frontier's strategic objective is to create a large industrial and environmental services business through a buy and build growth strategy. Currently, the Corporation provides civil construction and excavation services to the industrial industry, primarily in the in situ Oilsands region south of Fort McMurray, Alberta.  Through providing these services to large industrial customers in the steam assisted gravity drainage ("SAGD") region of northeastern Alberta, the Corporation focuses on the ongoing demand for services to support operating facilities, sustaining capital expenditures to maintain production levels of those facilities and the development of new production capacity.

The Corporation's common shares and common share purchase warrants are listed on the TSX Venture Exchange under the trading symbol "FFF" and "FFF.WT", respectively.

Reader Advisory

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements based on certain expectations, projections and assumptions. Certain information in this news release contains forward-looking statements including management's assessment of Northern Frontier's future operations, business prospects and opportunities, management's future expectations regarding the financial performance of the Corporation, forecasted 2014 capital expenditures of the Corporation and expected payment of dividends declared. With respect to the forward-looking statements contained in this news release, Northern Frontier has made assumptions, regarding among other things: that Northern Frontier will continue to conduct its operations in a manner consistent with past operations. Although Northern Frontier believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Northern Frontier's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect Northern Frontier's operations and financial results are included in Northern Frontier's MD&A and other reports on file with Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Northern Frontier does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

This information is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control. Users of this information are cautioned that actual results may differ materially. For additional information refer to the "Advisory Regarding Forward-Looking Statements" section of the Corporation's MD&A.

Non-GAAP Measures

Selected financial information for the three and 13 month periods ended December 31, 2013 is set out above and includes the following measures that are not recognized under International Financial Reporting Standards ("IFRS") and are non-generally accepted accounting principles ("non-GAAP") measures: EBITDA and Funded Debt. This information should be read in conjunction with the consolidated financial statements for the three and 13 month periods ended December 31, 2013 and the Corporation's MD&A available under the Corporation's profile on SEDAR at www.sedar.com. Further information regarding these non-GAAP measures is contained in the Corporation's MD&A.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE Northern Frontier Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...